CDMO stocks in focus: Laurus Labs hits new high; Sai Life Sciences gains 2%

CDMO (Contract Development and Manufacturing Organisation) stocks remained in focus on Monday, with Laurus Labs hitting a high of ₹1,331.75, rising 1 per cent during intra-day trading on the BSE.

 

Shares of Sai Life Sciences were up 2 per cent to ₹1,106.65, recovering 5 per cent from its intra-day low of ₹1,051.70 on the BSE. The stock has bounced back 16 per cent from its Friday’s low of ₹950.15, data showed. It had hit a record high of ₹1,138.85 on May 11, 2026.

 

In the past one month, Laurus Labs and Sai Life shares have surged 18 per cent and 15 per cent, respectively. In comparison, the BSE Sensex has slipped 4.2 per cent.

 

 

 What’s driving Sai Life Sciences, Laurus stocks price?

 

Sai Life Sciences reported a steady January to March 2026 quarter (Q4FY26), with revenue/Ebitda/PAT growing 4 per cent/12 per cent/18 per cent Y-o-Y. However, the performance was marginally below estimates. The miss on numbers was primarily due to 5 per cent year-on-year (Y-o-Y) decline in the CDMO business on a high base of Q4FY25. Nonetheless, full-year CDMO growth remained robust at 33 per cent Y-o-Y.

 

Management reiterated long-term guidance of 15–20 per cent revenue compound annual growth rate (CAGR) with 28–30 per cent steady state Ebitda margin over the next two to three years.

 

The Contract Research Organisation (CRO) segment sustained strong momentum with 24 per cent Y-o-Y growth, driven by rising traction in integrated discovery programmes, dedicated full-time equivalent (FTE) models and increasing contribution from pharma. 

 

Analysts at JM Financial Institutional Securities said that the company remains on track to nearly double capacities over the next few years, with FY27 capex guided at ₹1,100 crore–₹1,300 crore primarily towards CDMO expansion and capability enhancement, backed by contractual visibility. Furthermore, the company added four commercial molecules and five Phase III/pre-registration molecules during the quarter.

 

Analysts believe Sai is poised to outperform the guidance on the back of rampant capacity expansion, ramp-up of blockbuster molecules and pipeline additions on the strength of integrated offering. Overall, the brokerage firm expects Sai to deliver revenue/Ebitda/APAT CAGR of 26 per cent/28 per cent/25 per cent over FY26–28, valuing the company at 28x FY28E Ebitda, yielding a target price of ₹1,371.

 

Meanwhile, Sai highlighted that the ongoing West Asia conflict has led to elevated input and logistics costs, resulting in near-term pressure on cost structure. The company has initiated discussions with customers for appropriate price revisions, although cost recoveries may not necessarily be immediate. On the tariff environment, management indicated no material impact has been observed so far, with large pharma customers proactively taking measures to mitigate potential tariff-related disruptions. 

 

Analysts at Motilal Oswal Financial Services remain positive on Laurus on the back of continued investment across manufacturing capacities for CDMO as well as contracts in generics space; enhancing technology offerings to widen business prospects in CDMO segment; and controlled financial leverage. 

 

The brokerage firm has raised earnings estimates by 8 per cent/6 per cent for FY27/FY28, factoring in higher traction in CDMO contracts, steady growth momentum in Non-ARV and ARV segments, and continued operating leverage. “We value Laurus at 62x 12M forward earnings to arrive at a target price of ₹1,370. Reiterate 'Buy'," analysts said in Q4 result update.

 

====================================================

Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.